Suppose that you buy, and one year later sell, a foreign (British) bond under the following...

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Suppose that you buy, and one year later sell, a foreign (British) bond under the following circumstances: When you buy the b

business accounting

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Answer 1

Answer #1

Buy = ($2 * £ 45 = $ 90 )

Sell = ($1.75 * £ 50 = $87.5 )

$ 87.5 - $ 90 = ( $ 2.5) Loss

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Answer 2

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